innovative small hydro technologies upgrading & refurbishments (modernization) niels m. nielsen,...

INNOVATIVE SMALL HYDRO TECHNOLOGIES

Upgrading & Refurbishments (Modernization)

Niels M. Nielsen, P.Eng.

Manager, Sustainable Energy Solutions

BC Hydro Engineering

Waterpower XIII July 2003

Introduction

INTRODUCTION• Of the 30 hydroelectric sites (up to 2,700 MW)

operated by BChydro, 8 have a capacity < 20MW.• The total capacity of these projects is 53MW - roughly

0.5% of the BChydro Generating Capacity (10,008MW). Alternatively, the largest 5 projects contribute roughly 84% (8,383MW)

• Small hydro plants pose a special problem as part of a large utility: – Small revenue stream– High unit cost based on large scale utility

processes (Union effect vs. IPP approach)– Can have a high environmental/risk profile

Introduction

• These sites require special considerations when modernizing:– Must follow business practices to ensure

profitability and maximum value– Modern equipment (including automation and

remote control) is required. – Low Operation and Maintenance (O&M) costs– Minimal environmental / risk profile.

Innovative Approaches to Modernizing Small Hydro Plants

OUTLINE

• Modernization Drivers

• Process to select Modernization Plan

• Innovative Approaches (examples)

• Management Approaches (asset planning software, implementation, risk management training)

• Summary

MODERNIZATION DRIVERS


• Small Hydro Asset Life Cycle

Acquire New Asset Operate

Maintain

MonitorDecision

Point

Replace Component

Modernize

Run toFailure

Age(years)

Effort

10 20 30 40 Stage of Diminishing Returns


• The Modernization Drivers– Modernization provides the best opportunity to

make changes; the drivers include:

• Licensing/regulatory requirements• Increased profitability (improved dependability)• Reduced labour and/or costs (reduced O&M)• Competition in the Electricity Market• New products (ancillary services)• New technology/existing equipment obsolete• Changing customer/stakeholder requirements• Risk reduction

PROCESS TO SELECT MODERNIZATION PLAN


Prioritizing Small Hydro Facilities– Core

• Does the plant provide system stability?

– Strategic • Does the facility increase supply in a supply constrained

region?• Does the facility belong to a river system?

– Non Strategic• Financial contributors


Establish Need for Capital Investment– Criterion used to establish value of each small hydro facility

Financial Contribution Health Condition Environmental

Role

Income/MWh Equivalent Age Fish

Capacity Known Failure Risk Air

Event Consequence Availability Water

Forced Outage Factor Recreation

Asset Management Process to Modernize Hydro Plants

Collate Contemporary Practice (Expert knowledge and Literature Review)

Support process with condition,performance and risk information

Populate model with technicaland financial information

Link engineering knowledgewith financial decision making

ModernizeHydroPlant

Asset ManagementDecision Support Tool

HydroMechanical

ElectroMechanical

AuxiliaryMechanical

AuxiliaryElectrical

Civil andother works

Automation,Protection& Control

Util

ity, A

ppro

ach

and

Bus

ines

sC

onsi

dera

tions

Scr

eeni

ng a

ndP

riorit

izat

ion

Life

Ext

ensi

onan

dM

oder

niza

tion

Pla

n

Inst

itutio

nal &

Reg

ulat

ory

Por

tfolio

Fea

sibi

lity

Pro

ject

Def

initi

on

and

Impl

emen

tatio

n

VOLUME 1

VOLUMES 2 TO 7

App

roa

ch f

or

Mu

lti

Pla

nt

Po

rtfo

lio


• Life Extension & Modernization Plan

4-2

4-8

4-9

4-10

4-1

4-5

4-6

4-7

Input utility'sbusiness objectives

(from Section 1.0)

4-11

Review Life Extension andModernization Plan (periodically)

Collect and analyze data onperformance and condition

Document Life Extension andModernization Plan

Inspect equipment andstructures

Identify needs and opportunities

Align needs and opportunities with plant strategies

Assign costs, benefits andtiming to selected needs and opportunities

Model financial parameters

Develop plant strategies

"PlantSurvey" 4-3

4-4 Identify risks

Plan Plant Survey

INFORMATION SOURCES

INSPECTION AND TESTS DATA AND INFORMATION IDENTIFICATION OF RISK

Operating logs

Walk around (overviewinspection) of equipment

Interview with site personnel foroperating and maintenancehistory and to complete genericequipment information sheets

Review of test results

Repair; frequency,duration, cost

Outage; frequency, type,cause and impact

Spare Parts; availability

Usage of plant

Maintenance reports

Original plant designreports

Drawings

Reservoir/dams

Water conveyances

Hydro plant structure

Hydro plant equipment

Needs and Opportunities Table

Major repair history

Reliability history

Upgrade/mod. Opportunities

Spare parts inventory

Description

ConditionRemaining service LifeMaintenance requirements


• Plant Survey Methodology for Assessing Needs & Opportunities

INNOVATIVE APPROACHES (CASE HISTORIES)

Innovative Approaches

CATEGORY ACTIVITYEquipment Improvements Upgrading and replacing

More efficient runners Automatic control of units Use of fish-friendly turbines Digital governors Reloading generator

Reducing Hydraulic Losses Trashracks Cleaning / replacing racks Debris management

Civil Reducing seepage losses Reshaping water passages Smoothing water passages Refurbishing flumes & canals

Increasing Hydraulic Head Raising dam (rubber dam, fusegates) or addingflashboardsLowering tailwater levels

Innovative Approaches

CATEGORY ACTIVITYAdditional Flows Diversions

Cooling water improvementsSealing gates & stoplogsReplacing worn seals

Improved Water Management Operational improvements (flexibility)Flow forecastingRemote control / automations

Knowledge Systems Asset management decision-supportOn-line PIOn-line flow measurement

Case Histories - Aberfeldie

Aberfeldie Penstock


Aberfeldie Turbine Runner


• Status Quo– 5MW powerhouse built in 1922 (80 years old). – Requires $20M of investment to continue to

operate.– Original dam suffered severe deterioration due to

ice build-up and avalanches - rehabilitated in1953 and now meets all current dam safety standards.

– Penstock at end of life.


• Potential Solutions– Three Options:

• Redevelop to 30 MW with 120 GWh per annum (F2006).• Refurbish at 5MW• Run to failure

– Refurbishment is not economic– Redevelopment is more economic, but not as

economic as other BC generation development options.

– Recommend different operation. For example, contract out routine work.

Case Histories - Falls River


• Status Quo– Two unit powerhouse totaling 7MW - built in 1930– Requiring $13 M of investment to continue to

operate.– End of the line, isolated and difficult to access

(50km south of Prince Rupert)– Significant rehabilitation work completed in 1992:

• Dam stabilized with rock anchors• Plant automated (This is a remote plant and existing

operators were retiring)


• Recommendation– Redevelop to 20 MW with 78 GWh per annum

(F2008).– Transmission lines capacity constraints may be an

issue - Brown lake (operated by IPP) is also on this line.

– Recommend different operation. For example, contract out routine work.

Case Histories - Shuswap

Shuswap Penstock (summer)


Shuswap Penstock (winter)


• Status Quo– 6MW powerhouse built in 1929.– Project comprises of Wilsey and Sugar Lake Dam

located at 35km and 55km east of Vernon

• Challenges– Downstream of the plant is a fish hatchery in

addition to a high value natural salmon stream– Deteriorating wood stave penstock and surge tank

on failing rock fill foundation (also rock-fall hazard at tunnel/penstock interface)

– Rehabilitation of low level outlet in dam was required


• Solutions– Bypass Valve installed for reliable water release at

facility if unit trips (low level outlets are not automated)

– In 1993, the facility was refurbished/rebuilt:• one penstock was rebuilt in steel. The surge tower was

eliminated - not required for steel penstock. • Generating unit refurbished during penstock rebuild.• Low level outlets refurbished

Case Histories - Woodfibre

Woodfibre penstock, screen house and surge tank


• Woodfibre mill built in 1955 is located near Squamish, BC. The electricity needs of the mill are provided by a 2.5MW Pelton wheel impulse turbine.

• Age related efficiency losses– Reduced output 2.1 MW (1955) to 1.5 MW– Deteriorating penstock (16%)– Reduced turbine efficiency (1%)– Realigned penstock (additional 90 degree bends

and valves - following slide) (1%)– Increased mill use of high pressure water (10%)


Penstock realignment for Mill Expansion


• Generation/water supply challenges– Long penstock for mill water supply - too

expensive to replace for turbine use only.– Penstock realignment is not cost effective.– New Pelton wheel marginally cost effective.

• Solutions– Benefits from improved management of the source

of high pressure mill water and adjustment to turbine operating point.

– Run until end of life. At this point, penstock replacement is justifiable.

Case Histories - Butlers Gorge

Tasmania, Australia


• Status Quo– 12.7MW powerhouse commissioned in 1951– Static Head of 50m (Butlers lake)– The water from the lake also supplies Tarraleah

power station via a tunnel then canal. Before entering the tunnel, energy is dissipated via an energy dissipater valve (next slide).

• Recommendations– Develop a mini hydro project to take advantage of

lost energy. Replace energy dissipater valve with a 2.5MW turbine.


Energy dissipater valve in operation

MANAGEMENT APPROACHES

Facility Asset Planning

Facility Asset Plan

1. General Facility and Contact Information

2. Strategic Intent of Facility•maintain status quo•upgrade / modernize•run to failure

3. Spending initiatives (OMA / Capital)

4. Performance Measures

5. Accountability Review

6. Risks

7. Mitigation Strategies

Sources of Information

•Condition Surveys•Plant Evaluations•Work Management Systems •Annual Operation, Maintenance & Administration Funding (OMA)•Reliability Centered Maintenance•Environmental•Dam Safety•Project Management Systems

APTUS

1 Annual Budgeting - Annual

Operating & Capital Dollars

2 Long Term Spending

3 Decision Support

4 Proforma Financial Statements

5 Capital Operating Project Analyses

6 Value Based Management Assessments

Asset Management

• APTUS Asset Planning System– APTUS APTUS is a software tool that streamlines the Asset Planning

process.

– APTUSAPTUS uses a discounted cash flow that recognizes economic and financial methods to provide decision support regarding capital and operating investment decisions. It also addresses non-financial issues using multiple account analysis.

– APTUSAPTUS has the ability to analyze the value of a portfolio of assets in a market context, and hence the value added from asset enhancements or risk reduction initiatives

– Information from engineering assessments is stored and used as input.

– Report provide a ranking of projects based on standard criteria; NPV, PV of EVA, B-C and value weighted non financial criteria.

– Model has flexibility to interact with enterprise software packages (PeopleSoft, SAP, JD Edwards etc.) It can also be used on a stand alone basis.

Aptus Financial Model Overview

Base Case Business

Model

SupplyForecast

FinancialPerformance

Goals

Risk Mitigation& Opportunity

Evaluation

DemandForecast

Framework

Scenario Planning

Model

© CopperLeaf Consulting Group Inc.

Aptus Base Case Forecasting

Base Case Business

Model

DemandForecast

SupplyForecast

Customer Classes

Peak/Load Profile

Growth Forecasts

Rate Forecasts

Market Prices

Asset Classes

Generation/Supply Profile

Expansion Forecasts

Variable Cost Forecasts

Other Production Costs

Base Case Pro-forma Statements

• Income Statement

• Balance Sheet

• Cash Flow

• Cost of Production Forecasts

Reporting flexibility:• Line of business, organizational

unit, generating station, etc.

• Spending forecasts by equipment components

• Consistent representation of forecasts and analysis

• Multi-year oriented

Report StructureCore


Aptus Scenario Planning Model

Report Structure

Financial Return Goals

liquidity, activity, return, coverage

Supply Mix Objectives

% hydro, fossil, renewable, etc.

Other Triple Bottom Line Goals

Macro Variable Changes

demand, supply, growth, price, etc.

Micro Variables Changes

spending, discount rates, etc.

Sensitivity Analysis

What if?

What is the effect?

Financial Performance

Goals

Risk & Opportunity

Framework

Scenario Planning

Model


Reports Menu



• Investment Risk Minimized

Review Economic, Technical, Environmental &Social Viability

Contracting Strategy

Potential Partners

Scope of Work & Perf. Criteria

UpdateBusiness Case

EvaluationBuildDetailed Design

Business Case

2 Exit Ramps1

Concept’l Design, Est.’s, & Deliv’bles

Phase 1 Phase 2

Risk Management

• Strategic Objective (overall goal for each small hydro project)

• Project Objectives, covering safety, financial, power quality, dependability, compliance, etc.

• Risk Assessment of likelihood and consequences of plant not meeting objectives

• Risk Management includes measures to ensure objectives met.


Training

– The application of knowledge is a crucial part of a change process. To learn and benefit from new approaches to modernization, two initiatives are available:

- Through a management consulting arrangement with roll-out of a modernization plan on a specific plant and hands on training for future work.

- Classroom workshop & simulation training to promote understanding of the methodology.


Summary– Small Hydro plants age and eventually require

modernization– Present technical and business drivers can be

markedly different to original considerations.– Opportunities often available to increase value.– Systematic processes lead to greatest gains

(asset management).– Innovative and new approaches can improve

modernization outcomes.

innovative small hydro technologies upgrading & refurbishments (modernization) niels m. nielsen,...

Documents

small hydro facility

mw small hydro plants

modernization plan slide

small hydro facilities

modernization drivers

asset management process

new asset

risk information